Hungary’s government plans to submit proposals on a tax on large personal fortunes, an expanded KATA tax regime and changes to the simplified EKHO tax at the same time. Finance Minister András Kármán said the measures are intended to make the tax burden fairer.
Kármán said the wealth tax would apply to billionaires’ personal assets, not their companies. He described it as an incentive to direct capital toward productive investment and estimated it could raise 200 billion forints a year. The government does not expect a wave of lawsuits over asset valuations, he added.
The EKHO changes would set the same annual 60 million-forint threshold for everyone. Removing the special treatment for professional athletes would affect about 200 taxpayers, the minister said.
Kármán said expanding KATA would reverse restrictions introduced in 2022 and provide self-employed people and microbusinesses with a simple legal tax option. He said the main aim was not to increase government revenue and expected the changes to have a neutral budget impact.
He linked the proposals to previously adopted VAT cuts and the introduction of a personal income tax credit, saying they shared the goal of a fairer tax system. The government plans to submit Hungary’s 2027 budget to parliament at the end of October.